Bureau Veritas SA (BVI.PA) | Investment Case

1. Company Snapshot

1.a. Company Description

Bureau Veritas SA provides laboratory testing, inspection, and certification services.It operates through six segments: Marine & Offshore; Agri-Food & Commodities; Industry; Buildings & Infrastructure; Certification; and Consumer Products.The company engages in the inspecting, analyzing, auditing, and certifying the products, assets, and management systems of its customers in relation to regulatory benchmarks or volunteers, as well as issues compliance reports.

It also provides laboratory and on-site testing services for manufacturing and process industries; inspection services for products, services, assets, and installations, as well as designed to control quality, verify quantity, and meet regulatory requirements; and certification services for management systems, products, and people.The company serves automotive and transportation, building and infrastructure, chemicals, commodities and agriculture, consumer products and retail, food, marine and offshore, oil and gas, and power and utilities industries, as well as financial services and public sectors.It operates in approximately 140 countries through a network of 1,600 offices and laboratories.

Bureau Veritas SA was founded in 1828 and is based in Neuilly-sur-Seine, France.

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1.b. Last Insights on BVI

Bureau Veritas' recent performance was negatively impacted by the announcement of potential discussions with SGS regarding a business combination. This news may create uncertainty and concerns among investors about the company's future strategy and potential impact on its operations. The lack of clarity on the outcome of these discussions may have contributed to the negative sentiment surrounding the company.

1.c. Company Highlights

Last Price	26.7
Change Percentage	-0.37%
Open	26.8
Previous Close	26.8
Market Cap ( Millions)	11842
Volume	648545
Year High	31.54
Year Low	24.12
M A 50	27.55
M A 200	27.77

FCF Yield	6.89%
Dividend Yield	3.37%
ROE	38.52%
Debt / Equity	179.27%
Net Debt / EBIDTA	127.75%
Price To Book	8.29
Price Earnings Ratio	18.18
Price To FCF	14.52
Price To sales	1.85
EV / EBITDA	10.09

2. Bureau Veritas Delivers Robust H1 2025 Performance

Bureau Veritas reported a strong financial performance in H1 2025, with revenue growing 6.7% organically to EUR 3.2 billion, driven by high volumes and targeted pricing programs. The adjusted operating profit increased 8.8% to EUR 491.5 million, with a margin of 15.4%, up 44 basis points year-on-year. Adjusted earnings per share rose 2.4% to EUR 0.65, slightly below estimates of EUR 0.66. The company's financial performance was characterized by a 55 basis point improvement in adjusted operating margin at constant currency, driven by operational leverage and cost containment.

Publication Date: Jul -29

                                    📋 Highlights
                                    Robust Organic Revenue Growth:
                                                Revenue grew 6.7% organically to EUR3.2 billion, driven by high volumes and pricing programs.
Strong Profitability Improvement:
                                                Adjusted operating profit increased 8.8% to EUR491.5 million, with a 15.4% margin, up 44 basis points YoY.
Regional Growth Highlights:
                                                Middle East and Africa grew 20.8%, Asia-Pacific 7.6%, Americas 5.7%, and Europe 2.9%, showcasing broad-based growth.
LEAP28 Strategy Execution:
                                                Six acquisitions added EUR60 million in annualized revenue, with a reorganized executive committee to accelerate growth.
Strong Cash Generation:
                                                Free cash flow of EUR168 million, with working capital improvement and stable operating cash flow of EUR262 million.

                                

Segmental Performance

The company's various divisions delivered mixed results, with the Marine & Offshore division posting 12.7% organic growth, driven by high demand for equipment certification services and a solid backlog. The Agri-Food & Commodities activity grew 5%, with the Oil & Petrochemicals segment achieving low single-digit growth and Metals & Minerals delivering double-digit growth. The Industry division achieved 12.3% organic growth, driven by strong energy spending. As noted by Hinda Gharbi, the company's portfolio is well-positioned to navigate macroeconomic changes, with a balanced mix of regulatory and non-regulatory services.

Cash Flow and Capital Allocation

The company's cash generation was strong, with working capital requirement decreasing to 6.8% and operating cash flow stable at EUR 262 million. Net CapEx was EUR 65 million, and interest paid was higher due to lower excess cash placement. Bureau Veritas reported EUR 168 million in free cash flow, down 11.5% year-on-year, with one-offs from divestments affecting the figure. The capital allocation strategy remains disciplined, with EUR 37 million paid in closed deals in the first half and a commitment to an additional EUR 50 million for four deals signed in July.

Valuation and Outlook

With a P/E Ratio of 21.46, P/B Ratio of 6.2, and EV/EBITDA of 10.97, the company's valuation metrics suggest a relatively stable outlook. The company's leverage remained within the 1-2x range, and the dividend policy is unchanged at 65%. Bureau Veritas confirmed its full-year 2025 outlook, expecting mid-to-high single-digit organic revenue growth, improvement in adjusted operating margin, and strong cash flow. Analysts estimate next year's revenue growth at 5.4%, indicating a moderate slowdown.

3. NewsRoom

Ramp Metals Receives Drill Permit for Rottenstone SW, Saskatchewan

Dec -03

Source:

European Enterprises Strive for AI Innovation and Compliance, ISG Says

Dec -02

Source:

Bureau Veritas (ENXTPA:BVI): Assessing Current Valuation After Recent Share Momentum

Nov -17

Source:

Bureau Veritas appoints Santiago Arias Duval as Executive Vice-President for the Americas region

Nov -17

Source:

BUREAU VERITAS: Number of shares and voting rights as of October 31, 2025

Nov -12

Source:

Post-Stabilisation Announcement

Nov -03

Source:

Bureau Veritas Showcases Three Key Net-Zero Transformation Solutions at Energy Taiwan

Oct -29

Source:

Assessing Bureau Veritas After a 4.7% Weekly Surge and New Digitalization Push

Oct -28

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.21%)

6. Segments

Buildings & Infrastructure

Expected Growth: 4%

The 4% growth in Buildings & Infrastructure from Bureau Veritas SA is driven by increasing demand for sustainable and energy-efficient buildings, government investments in infrastructure development, and rising need for building inspection and certification services. Additionally, the growing focus on environmental, social, and governance (ESG) considerations is driving demand for Bureau Veritas' services.

Industry

Expected Growth: 4.5%

Bureau Veritas SA's 4.5% growth is driven by increasing demand for testing, inspection, and certification services in industries such as oil and gas, aerospace, and consumer goods. Growing regulations and standards, coupled with a rising focus on quality and safety, are key growth catalysts. Additionally, the company's expansion into emerging markets and strategic acquisitions are contributing to its growth momentum.

Agri-Food & Commodities

Expected Growth: 3.5%

The 3.5% growth in Agri-Food & Commodities at Bureau Veritas SA is driven by increasing demand for sustainable and certified food products, rising concerns over food safety and quality, and growing trade volumes. Additionally, the segment benefits from the company's expertise in testing, inspection, and certification, as well as its strong presence in emerging markets.

Consumer Products

Expected Growth: 4.8%

Bureau Veritas SA's 4.8% growth in Consumer Products is driven by increasing demand for safe and sustainable products, expansion in e-commerce, and rising consumer spending power. Additionally, the company's investments in digitalization, certification, and testing services have enhanced its market position, enabling it to capitalize on growing trends in the industry.

Certification

Expected Growth: 5.2%

The 5.2% growth driven by Bureau Veritas SA's certification is attributed to increasing demand for sustainability and environmental services, expansion into new geographies, and strategic acquisitions. Additionally, the company's diversified portfolio and strong brand reputation have contributed to its growth momentum.

Marine & Offshore

Expected Growth: 4.2%

The 4.2% growth in Marine & Offshore segment of Bureau Veritas SA is driven by increasing demand for sustainable and environmentally-friendly ship operations, rising adoption of digitalization and automation in the maritime industry, and growing need for compliance with stringent regulations and standards.

7. Detailed Products

Inspection Services

Bureau Veritas provides inspection services to ensure compliance with regulatory requirements and industry standards, covering areas such as quality control, safety, and environmental protection.

Testing Services

Bureau Veritas offers testing services to evaluate the performance, safety, and quality of products, materials, and equipment, including testing for electrical, mechanical, and environmental properties.

Certification Services

Bureau Veritas provides certification services to verify that products, systems, and processes meet specific standards, regulations, or industry requirements, such as ISO certifications.

Audit and Advisory Services

Bureau Veritas offers audit and advisory services to help organizations improve their performance, reduce risks, and optimize their operations, including supply chain audits and risk assessments.

Training Services

Bureau Veritas provides training services to educate clients on various topics, including quality, health, safety, and environmental management, as well as industry-specific regulations and standards.

Digital Solutions

Bureau Veritas offers digital solutions, including software and data analytics services, to help clients manage their operations, reduce risks, and improve their performance.

8. Bureau Veritas SA's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Bureau Veritas SA is moderate due to the presence of alternative service providers in the testing, inspection, and certification industry.

Bargaining Power Of Customers

The bargaining power of customers is low due to the specialized nature of Bureau Veritas SA's services, which limits the ability of customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers in the industry, but Bureau Veritas SA's large scale of operations gives it some negotiating power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the testing, inspection, and certification industry, including the need for specialized expertise and equipment.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the industry, leading to a competitive market environment.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	53.40%
Debt Cost	5.56%
Equity Weight	46.60%
Equity Cost	8.23%
WACC	6.80%
Leverage	114.58%

11. Quality Control: Bureau Veritas SA passed 6 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Logista

A-Score: 7.4/10

Value: 7.0

Growth: 5.9

Quality: 5.8

Yield: 10.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

Strabag

A-Score: 6.6/10

Value: 8.1

Growth: 4.7

Quality: 6.2

Yield: 8.1

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

Ipsos

A-Score: 5.6/10

Value: 7.8

Growth: 5.3

Quality: 6.7

Yield: 6.2

Momentum: 1.0

Volatility: 6.3

1-Year Total Return ->

Bureau Veritas

A-Score: 5.5/10

Value: 3.7

Growth: 5.0

Quality: 6.0

Yield: 5.6

Momentum: 3.0

Volatility: 9.7

1-Year Total Return ->

DKSH Holding

A-Score: 5.0/10

Value: 6.2

Growth: 3.3

Quality: 4.5

Yield: 6.9

Momentum: 1.0

Volatility: 8.3

1-Year Total Return ->

SGS

A-Score: 4.8/10

Value: 1.6

Growth: 3.2

Quality: 5.5

Yield: 6.9

Momentum: 2.0

Volatility: 9.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-1.99%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.80%

Bureau Veritas SA - FR0006174348

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on BVI

1.c. Company Highlights

Less Volatile

Expensive

Average Quality

Stable Momentum

Revenues Beats

Earnings Miss

Average Growth

Fairly Valued

Revenues Miss

Average Yield

Earnings Beats

2. Bureau Veritas Delivers Robust H1 2025 Performance

Segmental Performance

Cash Flow and Capital Allocation

Valuation and Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.21%)

6. Segments

Buildings & Infrastructure

Expected Growth: 4%

Industry

Expected Growth: 4.5%

Agri-Food & Commodities

Expected Growth: 3.5%

Consumer Products

Expected Growth: 4.8%

Certification

Expected Growth: 5.2%

Marine & Offshore

Expected Growth: 4.2%

7. Detailed Products

Inspection Services

Testing Services

Certification Services

Audit and Advisory Services

Training Services

Digital Solutions

8. Bureau Veritas SA's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Bureau Veritas SA passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

26.7$

Current Price

26.7$

Potential

-0.00%

12.e Scoring ^Insights

12.f DCF ^BETA